Well you have a blank slate. Multiple things you can do to make this less of a movie theater living room and more of a family room.
--Bring chairs forward a bit and move them about a foot apart from each other and centered on the wall. If you add more seating for a conversational grouping, you won't want to be sitting so close. Slightly tilt the chairs toward each other for a cozier feeling.
--Keep the polka dot chair and ottoman for now, but move toward the corner opposite of where you have it over by the door. Put a reading lamp behind it to creat a reading corner feeling.
--Deal with the TV wall, which is overwhelmed by the humongous TV. Get a long, low bookcase in white that goes all the way across the wall. Add art work, books, a lamp, etc. to take the focus off just the TV. This is two double Ikea storage pieces with small art pieces to add interest to the wall.
--Get a couple of armchairs in orange and float them to face the glass doors. Put nesting side tables between them to pull out for drinks, iPad, as needed. (Something like this style only orange leather.) These don't take up too much visual space because of wooden legs. Pick an upholstery color that works with your TV chairs, rug, polka dot chair. If you're changing out the polka dot chair (not sure you should. It'll look great in the corner next to a newly designed wall), then pick upholstery that coordinates with your room.
--Run a curtain rod a--ll the way from corner across to the right edge of the door. Add linen or semi-sheer curtains the same color as your walls to add softeness and privacy to that wall as needed.
--Make sure whatever the glass door face is inviting to look at--potted plants, nice outdoor table and chairs, etc.
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Light fixture, bar table
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